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HSBC FTSE 250 Index Inclusive - Accumulation (GBP)

Sell:246.96p Buy:246.96p Change: 1.75p (0.71%)
Prices as at 7 August 2020
Change: 1.75p (0.71%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Prices as at 7 August 2020
Change: 1.75p (0.71%)
Prices as at 7 August 2020
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund is on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. However, this is not a recommendation to buy.

The FTSE 250 is full of medium-sized companies with exciting growth potential. We think this is an excellent tracker fund, offering a low cost way to invest in this area of the market. HSBC has lots of experience running tracker investment funds. We think they'll do a good job for investors over the long run.

Our view on the sector

Businesses listed on the FTSE 250 Index are often called medium-sized companies or 'mid-caps'. While the FTSE 100 includes the UK's 100 largest companies, the FTSE 250 contains the next 250 largest companies. They're the main hunting ground for fund managers who run UK mid-cap funds. Medium-sized companies have made strong returns for long-term investors. But their performance tends to be sensitive to the health of the UK economy than larger ones. We think they've got the potential to deliver strong returns for long-term investors prepared to weather the increased volatility. They could add diversification to a portfolio focused on larger companies too.

Performance Analysis

Tracker funds are one of the simplest ways to invest. They aim to match the performance of an index, rather than beat it. They usually do this by investing in every company in the index. This means they don't need analysts to research individual companies, which keeps costs to a minimum. If the fund's costs are low it's likely to track the index more closely.

Investment Philosophy

This is an index tracking fund, a style which is sometimes called passive investing. Some investors believe stock markets have become so highly researched that it is very difficult for active managers to add value. As technology has improved, markets have become more efficient and many opportunities disappear before active managers can take advantage. The results speak for themselves- whilst some active managers consistently outperform the majority fail.

Passive investments follow an index, where predefined rules dictate the investments included and their proportion. Most commonly the indices set that the biggest, most frequently traded companies occupy the biggest share. If the market feels a company is good, its price goes up and it becomes a larger part of the index. Therefore the index reflects the whole market's view of a company- not just one analyst's.

Tracker funds aim to match an index not beat it. They follow the rules of the index on what they invest in, which means that the fund does not need to employ expensive teams of analysts or researchers- the best tracker funds have very low costs. There is also less risk that the fund will substantially underperform. It is normally easy to find out what the fund invests in by checking its index and it is often easy to monitor the performance.

Process and Portfolio Construction

HSBC have a straightforward approach to managing this fund. They invest in every company in the FTSE 250 Index and in the same proportion. This is called 'full replication'. It minimises the risk of the fund differing too much from the index. They don't lend shares to other companies, like some other tracker managers do with a view to reduce costs, as this would add risk to the fund.

question mark Manager Track Record Based on HL Quantitative Research

  • HSBC FTSE 250 Index Acc
  • FTSE 250 TR GBP

Fund Track Record

07/08/15 to 07/08/16 07/08/16 to 07/08/17 07/08/17 to 07/08/18 07/08/18 to 07/08/19 07/08/19 to 07/08/20
Annual return 0.31% 17.14% 6.34% -5.78% -6.52%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Fund Management Group Comment

HSBC Global Asset Management is the investment management arm of HSBC Group- global bank and financial services company. HSBC has a long history in tracker funds- they have been managing passive investments for over 20 years and have recently launched a range of ETFs in the UK to complement their eight tracker funds.

Information about the fund

Fund manager biography

Manager Name: HSBC Index and Systematic Equity Portfolio Management Team
Manager start date: 30 September 2016
Manager located in: N/A


Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account